By: King S.B. No. 1015
A BILL TO BE ENTITLED
AN ACT
relating to periodic rate adjustments by electric utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.210, Utilities Code, is amended by
amending Subsections (a), (d), (f), and (g) and adding Subsections
(h) and (i) to read as follows:
(a) The commission [or a regulatory authority], on the
petition of an electric utility, may approve a tariff or rate
schedule in which a nonfuel rate may be periodically adjusted
upward or downward, based on changes in the parts of the utility's
invested capital, as described by Section 36.053, that are
categorized or functionalized as distribution plant,
distribution-related intangible plant, and distribution-related
communication equipment and networks in accordance with commission
rules adopted after consideration of the uniform system of accounts
prescribed by the Federal Energy Regulatory Commission. A
periodic rate adjustment must:
(1) be approved or denied in accordance with a [an
expedited] procedure that[:
[(A) provides for appropriate updates of
information;
[(B)] allows for participation by the office and
affected parties; [and
[(C) extends for not less than 60 days;]
(2) take into account changes in the number of an
electric utility's customers and the effects, on a
weather-normalized basis, that energy consumption and energy
demand have on the amount of revenue recovered through the electric
utility's base rates;
(3) be consistent with the manner in which costs for
invested capital described by this subsection were allocated to
each rate class, as approved by the commission, in an electric
utility's most recent base rate statement of intent proceeding with
changes to residential and commercial class rates reflected in
volumetric charges to the extent that residential and commercial
class rates are collected in that manner based on the electric
utility's most recent base rate statement of intent proceeding;
(4) not diminish the ability of the commission or a
regulatory authority, on its own motion or on complaint by an
affected person as provided by Subchapter D, after reasonable
notice and hearing, to change the existing rates of an electric
utility for a service after finding that the rates are unreasonable
or in violation of law;
(5) be applied by an electric utility on a system-wide
basis; and
(6) be supported by the sworn statement of an
appropriate employee of the electric utility that affirms that:
(A) the filing is in compliance with the
provisions of the tariff or rate schedule; and
(B) the filing is true and correct to the best of
the employee's knowledge, information, and belief.
(d) An [Except as provided by Subsection (d-1), an] electric
utility may adjust the utility's rates under this section not more
than twice [once] per year [and not more than four times between
comprehensive base rate proceedings].
(f) Nothing in this section is intended to:
(1) conflict with a provision contained in a financing
order issued under Subchapter I of this chapter or Subchapter G or
J, Chapter 39;
(2) affect the limitation on the commission's
jurisdiction under Section 32.002;
(3) include in a periodic rate adjustment authorized
by this section costs adjusted under a transmission cost-of-service
adjustment approved under Section 35.004(d);
(4) [limit the jurisdiction of a municipality over the
rates, operations, and services of an electric utility as provided
by Section 33.001;
[(5)] limit the ability of a municipality to obtain a
reimbursement under Section 33.023 for the reasonable cost of
services of a person engaged in an activity described by that
section; or
(5) [(6)] prevent the commission from:
(A) reviewing the investment costs included in a
periodic rate adjustment or in the following comprehensive base
rate proceeding to determine whether the costs were prudent,
reasonable, and necessary; or
(B) refunding to customers any amount improperly
recovered through the periodic rate adjustments, with appropriate
carrying costs.
(g) The commission shall adopt rules necessary to implement
this section. The rules must provide for:
(1) a procedure by which a tariff or rate schedule is
to be reviewed and approved;
(2) filing requirements and discovery consistent with
[the expedited procedure described by] Subsection (a) [(a)(1)];
(3) an earnings monitoring report that allows the
commission [or regulatory authority] to reasonably determine
whether a utility is earning in excess of the utility's allowed
return on investment as normalized for weather;
(4) denial of the electric utility's filing if the
electric utility is earning more than the utility's authorized rate
of return on investment, on a weather-normalized basis, at the time
the periodic rate adjustment request is filed; and
(5) a mechanism by which the commission may refund
customers any amounts determined to be improperly recovered through
a periodic rate adjustment, including any interest on the amounts.
(h) An electric utility may file a request for a periodic
rate adjustment under this section on any day on which the
commission is open for business. The fact that an electric utility
has a base rate proceeding pending during a proceeding conducted
under this section does not establish grounds for dismissal of
either proceeding.
(i) The commission shall enter a final order on a request
for a periodic rate adjustment under this section not later than the
60th day after the date the request is filed. The commission may
extend the deadline for not more than 15 days for good cause.
SECTION 2. Section 36.210(d-1), Utilities Code, is
repealed.
SECTION 3. The changes in law made by this Act apply only to
a proceeding before the Public Utility Commission of Texas, or
other regulatory authority described by Section 11.003, Utilities
Code, that commences on or after the effective date of this Act. A
proceeding before the Public Utility Commission of Texas or other
regulatory authority described by Section 11.003, Utilities Code,
that commenced before the effective date of this Act is governed by
the law in effect on the date the proceeding commenced, and that law
is continued in effect for that purpose.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.